Portfolio Concentration Norms for Equity Exchange Traded Funds (ETFs) and Index Funds

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..... Norms for Equity Exchange Traded Funds (ETFs) and Index Funds 1. In order to address the risk related to portfolio concentration in ETFs and Index Funds, it has been decided to adopt the following norms: a) The index shall have a minimum of 10 stocks as its constituents. b) For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index. For other than secto .....

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..... rter. c) The ETF/Index Fund issuer shall ensure that the updated constituents of the Indices (for all its ETFs/ Index Funds) are available on the website of such ETF/Index Fund issuers at all points of time. 3. Applicability: a. All existing Equity ETFs/ Index Funds in the market: The issuers of all the existing Equity ETFs/ Index Funds are required to ensure adherence to the new norm .....

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